Ab initio density functional calculations were performed to study the geometry and electronic structure of a prototypical zigzag AlN nanoribbon. We find that H-terminated zigzag 10-AlN nanoribbons have a non-direct band gap and are nonmagnetic. When a transverse electric field is applied, the band gap decreases monotonically with the strength of field E. Zigzag AlN nanoribbons with the N edge unpassivated display strong spin-polarization close to the Fermi level, which will result in spin-anisotropic transport. These results suggest potential applications for the development of AlN nanoribbon-based nanoelectronics applications. (C) 2009 Elsevier B. V. All rights reserved.